Bill AB 920 Offers Compensation Option for Net-Metered Net Generators

Assembly Bill AB 920 authored by Assembly member Jared Huffman, and approved by Governor Schwarzenegger, provides an enhancement to the current Net Energy Metering (NEM) program by providing a compensation option to the basic NEM program for "net generators," i.e. customers who import more electricity to the grid than they export from the grid, based on a customer's 12-month annual billing cycle.

Net generators now have the option to receive financial compensation at a wholesale rate (approx. $.039/kWh) or to apply the net surplus as a credit for the kilowatt hours subsequently supplied. Renewable Energy Credits (RECs) associated with any new surplus electricity sold to the utility will be owned by the utility, while RECs associated with electricity used onsite will be retained by the customer.